Yoda
As to the value of CGA - it may have capital to fund its business for another 12 months, but you can't value a fund management that has almost halved its FUM ( and Revenues ) in just 4 months, has a large cash bleed, and has not gained an independent FUM insto contract in ? years -- so you actually have nothing in a year's time -- Nil cash and an ongoing loss. Even the easiest IE Report would normally value that at 'NIL".
Yoda I am sorry, you are normally so right. But you can't apply a CTN IMA multiple that CGA and NAOS have invented for their own purposes ( particularly one that overstates the real potential life of the contract ), and not look at inhouse costs ), and apply that multiple in the real world to a mish mash of CIE , CQG, Switzer and unlisted trusts - lower fees, more back office. 1% 0f FUM may be the highest you might pay for the platforms in place. ie 8 cents a share? Sounds like we will see further adjustments to CGA's Balance Sheet ( impairments of value ) -- query where the optimistic view of 17/ 18 profit came from, or was that taking an asset sale creeping into P & L?
DYOR
CGA Price at posting:
85.0¢ Sentiment: None Disclosure: Not Held
